prihatiningsih (North Shore) Dr Alan Bollard needs to see the whole picture. It is right that your job is to control inflation. But will you sacrifice the national economy just for your reputation. Your policy is good only for the rich, they can deposit their surplus money in the bank and get high interest, but most of the people still have mortgage and they are dying to repay to the bank. Don't let the economy wheel totally stop, it is very difficult to roll it again. It is like when you are pushing a car, when it is totally stop it is very difficult to push it, but when it is still moving a bit, you still have the momentum to make it moving. Is USA's example is not enough for you. Dr Bollard please don't bring NZ economy into recession.
Gandalf (St Heliers) Prehatingingse, your comments about the difficulty getting the economy rolling again etc is brilliant and spot on. Bollard does however have to first aggressively tame inflation to just within 3% or you get a bad stagflation. I think now the housing sector is slowing he's done this, but he has to then rapidly and forcefully drop interest rates and given all the looming deflationary pressure that may not be too far away. It's a balancing act. On one side stagflation with lots of inflation, on the other a bad deflationary recession. But he has room to move and there is a lot in NZ's favour.
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